McDonald’s sales have fallen worldwide for the first time in nearly four years amid rising prices and ongoing boycotts over the war in Gaza.

The fast food giant said same-store sales decreased by 1% in the second quarter of the year – its first drop since the COVID pandemic forced thousands of branches to close in early 2020.

Under-pressure chief executive Chris Kempczinski admitted it was “clear that our value leadership gap [over rivals] has recently shrunk” but said the company was “working to fix that with pace”.

However, he conceded that same-store sales – sales at branches that have been operating for at least a year – were also likely to be down over the next few quarters.

Total revenue for the period was flat at $6.5bn, while net income fell by 12% to $2bn, the results also revealed.

McDonald’s blamed the figures on a fall in the number of its customers in the US, which was partly offset by price rises, along with the “continued impact of the war in the Middle East” and weaker demand in China.

Read more from business:
Evri to hire 9,000 new staff
Half of UK TV and film staff out of work
Royal Mail bidder talks over £3.6bn deal

Be the first to get Breaking News

Install the Sky News app for free

Mr Kempczinski said the costs of paper, food and staff had increased by as much as 40% in some markets as he defended higher menu prices.

Industry-wide figures suggest fast food chains in the US have suffered a 2% fall in customers so far this year amid inflation pressures.

Mr Kempczinski said the firm was working on new product lines and meal deals in an attempt to entice customers back, with meal deals having an impact in markets such as the UK.

Keep up with all the latest news from the UK and around the world by following Sky News

Boycotts against the company were launched last year when McDonald’s Israel announced it was donating thousands of free meals to the country’s troops fighting in Gaza.

The giveaway prompted critics to accuse the fast food chain of helping to support the mass killings of Palestinians.

Israel has denied targeting civilians.

Sources at the global headquarters of McDonald’s in the US tried to distance the firm from the row by saying the company was keen not to take sides in the conflict and was against violence of any kind.

Its Israeli franchise, which sparked the controversy, was taken over by the company earlier this year.

Related posts:

Asda chief Burnley to step down after £6.8bn takeover Sunak’s budget responds to changing economy – but has he fumbled the climate crisis? Shell brings forward carbon pledge but ignores 90% of emissions, despite Dutch court ruling Premier League January transfer spending back at pre-pandemic levels Post-Brexit checks raise ‘real risks’ of future border complications as Dover braces for more delays at Easter Drivers paid higher pump prices after supermarkets increased margins – watchdog How changes of supermarket ownership helped fuel pump price charges Former NatWest boss breached data laws in sharing Farage bank details, watchdog finds Air fares poised to increase as airline charges hiked Businesses forced to rely on foreign workers as UK remains divided on record-high migration Former Post Office boss Paula Vennells formally stripped of CBE Housebuilder issues profit warning as interest rate cut delay hits UK demand